Conventional FNMA 1004

Any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property.

FHA 1004

Same as FNMA plus the following: Repairs necessary to make the property comply with FHA’s Minimum Property Requirements (MPR) or Minimum Property Standards (MPS) together with the estimated cost to cure must be reported. Minor/Cosmetic deficiencies must be reconciled.

Required repairs are limited to those repairs necessary to preserve the continued marketability of the property that include: Safety, Security, Soundness (structural integrity)

Conventional FNMA 1004

FHA 1004

Conventional FNMA 1004

Front, Back, Street Required

FHA 1004

The appraisal must contain at least three (3) photos of the exterior, including views of the front, back, and street scene.

Photos of the front and rear (with portion of subject in street photo) must be taken at opposite angles to clearly show all sides of the dwelling. Any improvements with contributory value that are not captured in the photos mentioned above must be photographed also. Street scene photo to include a portion of the subject site. If the subject property is proposed construction and the improvement has not started, the appraiser should take a photograph that shows the grade of the vacant lot.

Conventional FNMA 1004

FNMA requires that the comps are inspected by the appraiser at least from the street, and photos should be taken by the appraiser. MLS photos can be used instead of appraiser photos if access to comparable property is not possible.

FHA 1004

The appraiser must take photos and include them in the appraisal for every comparable reported in the appraisal. Although FHA does not specifically require photos of Listings or Pending Sales, LandSafe requires the appraiser to provide photos of ALL comparables included in a comparison grid.

Conventional FNMA 1004

FHA 1004

Conventional FNMA 1004

Similar to FHA, but less specific. FNMA permits an appraisal to be based on the "as-is" condition of the property as long as no adverse conditions exist that affect the livability, soundness, or structural integrity of the property. When conditions exist that affect the livability, soundness, or structural integrity of the property, the property must be appraised subject to completion of the specific alterations or repairs ("as-repaired").

In addition, the lender must obtain a completion report from an appraiser that confirms that the alterations or repairs have been performed and support the "as-repaired" value of the property, before it delivers the mortgage to FNMA.

FHA 1004

FHA is specific about how the value opinion is reported.

The “As-Is” value can be reported when:

There are no required repairs/alterations (as noted in the condition comments).

Inspection conditions are noted by the appraiser.

The property is being recommended for rejection.

The value opinion must be “Subject to completion per plans and specs” if:

The subject property is Proposed Construction where construction has not started, or

The subject property is under construction but not yet complete (less than 90%), or

The subject property is a rehab – Regular 203(k).

The value opinion must be “Subject to Repairs or Alterations” if:

The subject property has repair or alteration condition(s) noted by the appraiser, or

The subject property is a rehab – Streamline 203K, or

The subject property is Under Construction, more than 90% complete with only minor finish work remaining (buyer preference items - examples: floor coverings, appliances, fixtures, landscaping). This eliminates the need for construction exhibits.

The value opinion must be “Subject to Inspection” if:

Required inspection(s) noted by the appraiser

Examples of conditions that require automatic inspections include, but are not limited to:

Standing water against the foundation and/or excessively damp basements